Tax Crimes
If you have been charged with a tax fraud crime, contact this firm for a consultation at (678) 862-9344.
The Internal Revenue Service (IRS) has an extensive job in the federal government in ensuring business owners pay the taxes required under the Internal Revenue Code. The IRS cannot analyze every tax return filed in a given tax year. To combat this problem, the IRS has learned to focus their inquiries on members of certain groups or certain tax behavior which often accompanies fraudulent filings. Once a return is flagged, the IRS will conduct an audit to determine if the correct amount of taxes were paid, and if not, whether the action was a mistake or a willful evasion. It is at this point where the IRS will decide whether the case belongs in the Civil Division or the Criminal Investigations Division (CID) of the IRS.
The offense of filing a fraudulent return requires a person to willfully file a false statement with the IRS. This means a filer must know what is required under the Internal Revenue Code and still choose to file the falsity. There is a fine line between making an honest mistake and committing a federal crime. Which side of the line the tax payer falls on will decide which division of the IRS handles the investigation going forward. This reality makes it crucial that anyone under investigation hires an experienced tax fraud attorney early on in the process.
A criminal tax case will always start with an investigation from an agent with the CID. When the agent’s investigation is complete, they will make a decision on whether the case should be referred to the Department of Justice (DOJ) in D.C. If they choose to make the referral, an attorney with DOJ will review the file and make a recommendation. If that recommendation is criminal charges, the case is returned to local counsel where the case will be prosecuted. Local counsel will make the decision on whether to indict. At each juncture in this road map, a tax filer has the opportunity to challenge the willfulness of their conduct, the accuracy of the government’s numbers, and the proposed tax loss under the IRC. For this reason, it is important to contact a competent tax fraud attorney to advocate a defense at each step of the process.
An indictment is a way of charging someone with a felony after a complaint has been filed. After receiving the complaint, the U.S. attorney would present evidence before a grand jury. The grand jury is a secret proceeding in which neither the defendant nor their attorney can participate. At the grand jury, the United States attorney does not have to prove their case beyond a reasonable doubt. The standard at a grand jury is a much lower one. The grand jury must determine whether there is probable cause to go forward with a charge. Because of this low standard, all but the very weakest cases result in a true bill of indictment.
A true bill of indictment means that a grand jury has determined there is probable cause to move forward in a case and the charges have been formalized and will proceed to the trial court.
Why Would Someone Be Indicted In Federal Court?
A person can be charged with a crime in federal court for a variety of reasons. For example, in a situation where a federal law enforcement agency is pursuing and investigating a crime, such as the FBI, the DEA or the ATF, usually that offense will be charged as a federal case. However, sometimes for a variety of reasons, the federal agency or the U.S. attorney might decide to give a particular case back to the state to handle. Also some crimes must be charged federally because there is not an equivalent state charge. But when it comes to drug or narcotic cases, generally the case is charged in federal court when it either involves a large group of individuals participating in the scheme or a large quantity of drugs.
Does Someone Face Stiffer Sentences In Federal Court?
The federal criminal sentencing system is governed by the federal sentencing guidelines. These guidelines use different factors in a case to determine the sentencing range for a particular offense. Typically, the sentences are longer in federal than state court, but the cases are generally more serious too. For instance, it’s uncommon to see a person receive probation in federal court even for a first offense. This alone is a reason to retain a quality federal criminal defense attorney.
If you have been charged with a tax fraud crime, contact this firm for a consultation at (678) 862-9344.